Challenges and Opportunities for Compound Semiconductors in the Mobile Handset

Strategy Analytics believes that compound semiconductor penetration of wireless markets will continue to be driven by GaAs technology. Overall market growth for GaAs devices will continue to be derived from wireless markets, with cellular handsets being the primary driver over the next five years. In the handset, the emphasis for GaAs will remain on the switch and PA functions centred on GaAs HBT and pHEMT technologies. Silicon technologies will continue to dominate the cellular handset in functions outside of the cellular front-end, but the added complexity of multi-mode and multi-band handsets will increase GaAs device penetration in handset front ends at the expense of Si LDMOS and lead to a significant increase in the overall GaAs real estate in cellular handset front-end modules. Coupled with increasing GaAs demand from other markets, the total market will exceed $3 billion by the end of 2006, growing at a CAAGR of 7 percent through to 2010